Has Learningrx been the subject of a civil action alleging violation of a franchise, antifraud or securities law?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Except as described above, neither we, our predecessors, a person identified in ITEM 2, nor an affiliate offering franchises under our principal trademark has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten (10) year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud or securities law; fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices or comparable allegations.
- (C) Except as described above, neither we, our predecessor, a person identified in ITEM 2, nor an affiliate offering franchises under our principal trademark is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, State or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, neither Learningrx, its predecessors, individuals identified in Item 2, nor any affiliates offering franchises under Learningrx's trademark have been convicted of a felony, pleaded nolo contendere to a felony charge, or been the subject of a civil action alleging violation of a franchise, antifraud, or securities law within the ten years preceding the application for registration.
Furthermore, the document states that these parties are not currently subject to any injunctive or restrictive orders or decrees related to franchise, securities, antitrust, trade regulation, or trade practice law resulting from actions brought by a public agency. They are also not subject to orders from national securities associations or exchanges that would suspend or expel them from membership. This extends to injunctive or restrictive orders relating to other business activities resulting from public agency actions, including those affecting real estate broker or sales agent licenses.
This information is crucial for prospective franchisees as it provides insight into the legal and ethical standing of Learningrx and its associated parties. The absence of such legal issues suggests a stable and reputable franchise system. However, it is important to note that this statement is based on the information available at the time of the FDD's publication, and prospective franchisees should conduct their own due diligence to ensure that no new issues have arisen.